Tata Steel, JSW, JSPL, SAIL share prices: China steel demand a key monitorable: Lower iron-ore costs provide a respite

Stock market Today- Tata Steel, JSW, JSPL, SAIL share price while have remained in focus looking at strong domestic demand, it is the weak China demand and prices that has added to some concerns and remains a key monitorable. Lower iron-ore prices in the interim provides some respite on margins

Stock market Today- Tata Steel, JSW Steel, Jindal Steel & Power, Steel Authority of India Ltd share prices while have remained in focus looking at strong domestic demand, it is the Steel price movement in the country that remains watched for.

Rangebound prices

The steel prices have seen impact of weak China demand, the largest consumer of commodities in the world. The weak China demand puts pressure on international stele prices, keeping check on domestic prices too.

The steel price in the country had remained range bound. During April- June quarter In 1QFY25, average domestic HRC (Hot Rolled Coil) prices remained flat sequentially at ?53,630 a tonne (down 7% YoY), as per analysts data. Primary rebar prices increased 10% sequentially but were also flat YoY, at ?56,957 a tonne.

During second half of August'2024, by 22nd August, 2024, as per Haitong Securities data, the domestic HRC price stood at Rs50,300 a ton. Rebar prices (Mumbai) was at Rs49,900 a ton.

As per Haitong Securities Domestic steel demand remains robust with positive underlying demand trends across key steel consuming sectors like real estate, infrastructure and automobile. With positives demand drivers, China led pricing trends remain a key monitorable for the Indian steel industry, they added'

Subdued Steel prices are likely to compress spreads in Q2FY25 for Steel companies, said analysts at Axis Securities. Tata Steel had guided that the NSR in India will be ?1,500 a tonne lower sequentially, in the UK it will be flat and in the Netherlands, it will be down by £60 a tonne sequentially, highlighted Axis.